Who Makes Finance Decisions in International Marketing and what are the influencing factors

 

If you wish to learn about international marketing - briefly stating it is the performance of a business and its activities involved in planning, pricing, promotion and directing the flow of goods and services to its consumers in more than one country at a profit margin.

The difference between domestic marketing and international marketing is - the latter conducts marketing activities in more than one country.

However, the marketing objective remains same both for domestic or international marketing for marketers. 

The final goal and objective is to earn profit by selling goods or services in various regions which have demand for them.

There are many challenges associated with international marketing. These are:

As compared to domestic marketing, international marketing has a set of challenges and marketers are not aware of the foreign environment and have to find out more in the marketing during the phase of planning.

The challenges include:

- Competition

- Legal barriers

- Government controls

- Consumer behavior

- Ecology factors - weather etc.

Financial decisions regarding financial matters in respect of a business involve a lot of work. Especially when decisions have to be made about magnitude of funds with various goals that include - capitalization, assets, goals and income stream and such other, it requires a very careful consideration.

These decisions play a crucial role for the financial health of a firm.

Especially to avoid additional levy of charges, and to prevent sales decline and keeping the control of the company.

Such as these financial decisions are taken care of finance manager independently or in coordination with senior management of the business.  However, principally, finance manager is solely responsible to deal with finance decisions involving money matters.

Finance manager also has to consider the expertise of other functional areas that include - marketing, production, accounting, personnel and others to carry out his responsibilities wisely.

To achieve these, a finance manager has to have a great skill and prudent knowledge while taking financial decisions as they affect financial health in the long-term period. 

Therefore, considering the internal and external factors is also important.

Conclusion

At international level of marketing, there are many areas to pay close attention to prior to the making of financial decisions. Due to the impact it brings on global platform, particularly, if the business operations are more than in one country, finance decisions have to be made more effectively to bring a positive impact on the business.